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RBC INSURANCE PULLING ITS LIFE INSURANCE PRODUCTS FROM THE MARKET PLACE – IMPLICATIONS

In a surprising announcement RBC Insurance has just announced that they are pulling out of the following insurance markets

  • Term to 100 Life Insurance
  • Critical Illness
  • Universal Life Insurance
  • Long Term Care

RBC is a major player in the life insurance industry.  Likely other companies will follow their lead

The major reasons that RBC is pulling these products from the market is

  • Interest rate continue to be low
  • Equity returns are volatile and the returns are low
  • Increased regulations  are costing them money and time
  • An aging population are not cancelling their polices
  • A fifth  not mentioned but I think is also a consideration is that they have looked at their book of business and drawn the conclusion that they will be paying out more on these policies than they originally thought would be the case
  • They have concluded that their book of business on these policies is or will not be profitable

THIS WILL HAVE SERIOUS IMPLICATIONS FOR CLIENTS AND ADVISORS.   IT WILL BE  MORE THAN INTERESTING TO SEE HOW THIS ALL UNFOLDS 

This entry was posted on June 17, 2012 at 1:41-04:0006 and is filed under Business Applications, Estate Planning, Financial Commentary, Life Insurance Related, Wealth Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “RBC INSURANCE PULLING ITS LIFE INSURANCE PRODUCTS FROM THE MARKET PLACE – IMPLICATIONS”

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